need advise on this situation

Age 49
I kid = form 1 + 1 wife

Epf  2 Million
ASM 2 Million
Total 4 Million

Average interest dividen from both approx rm16K per month (5%pa)

Can survive with rm16k per month?
current mntly expenses approx rm7-10k per month max

My concern is that we FIRE too early and estimated short on what was needed to retire fully to only go back to work at 60-80 coz they found out the passive/money they have would not be able to sustain them till their last days...

RM5Mil seems to be coming up as an ideal number in which if inflation double up 2 times in your remaining years.

Basically halving your purchasing power 2 times to from 5mil --> 2.5mil --> 1.25mil... I think i stiill can live on passive from 1.25mil on my last days...

Agree that not many can achieve this amount in their lifetimes, so we end up still might be holding a lesser stress free job supplementing our passives.

Here then lies the crux that money again drives and compels us to work, would we not then be  considered achieved "financially independence" in this case?. Most people i know who achieved FI/RE, they are not concerned about money because they know they have enough to sustain themselves or their family.

With hindsight would u rather spent only 100k on local education, and use the balance of  480k to  invest for your eldest?
With so much competition in job market around the world, I think few can find expensive education a good ROI.

ppl i know who are really successful, money is not their primary motivation... also they do no FIRE because they love their job and perhaps power and influence that it brings...

If you want to FIRE you cannot count EPF cause EPF is accessable only when you retire.

If you FIRE, you cannot use the EPF money.

Of course you can count in EPF money by adding in buffer from the time you to retire until the year you can touch EPF money.

For me I never count.

I would consider the excess of 1M as calcs for monthly cashlow for life sustanance.
The main 1M principal which cannot be touched, doesn't count.
Not enuff to FIRE based on these, unless you have other assets, shares and savings.

Forget to add if FIRE, don't count on EPF as you cannot touch it until retirement age. The purpose of FIRE is retire before official retirement age.

Agree with your understanding of FIRE, but if you read this forum thread, many will not agree with you.... somehow Malaysians feel the need to leave something behind and they build it in their FIRE process.

Financial abundance doesn't mean keep spending until cannot finish lar... because if you think there is a max to what you can spend, all it means is you lack imagination... 
From the article, it seems to be just FIRE + leave something behind. Sure, the FIRE can be obese FIRE...

so i mean, if you can hit a traditional FIRE at the age of 35 for example, then you can't possibly hit financial abundance aka fat FIRE at that age...

fat FIRE is only possible later in life...

anyone here has fat FIRE in 30s?

yeah, but we don't wanna follow the normal route...

we wanna speed up process...

just for discussion sake only... cos I notice we here loves to say FIRE but in reality, we also planned FIRE for our kids...

exactly like what you mentioned here....

pretend pretend someone FIRE at 45 with 10 million.... but remain conservative and only drawdown part of one's passive income... suddenly pass away at 60... I dare say the descendants will be able to retire early due to inheritance. 

agree... taxes owed rightfully should be settled properly. not worth the headache unless we are billionaires who has lawyers at our disposal. like certain PMs.

unfortunately, or fortunately (as it means anyone can do it), the best way is to cut out unnecessary expenses.... luxury goods and services spending would be the first everyone should target.

If only I can go back in time and tell my younger self in his 20s not to eat at expensive restaurants, cut down on eating sweet stuff and cut down on branded coffee like starbucks... I think per month would have saved a few K already.

Imagine every 1K rm saved back then actually means can spend extra 3 rm per month now.

It was reported that Malaysia only has slightly more than 1.3 million individual taxpayers out of a population of more than 33.5 million, representing a mere 4.0 per cent of the whole population.

imagine your kid at the age of say 22 (working in Malaysia) and upon seeing his/her first paycheck, noticed that it is lower than his epf dividend. All thanks to his dad's generosity...    What a nice situation to be in.

Malaysia's situation of only 4% of our population paying personal income tax is more the issue of low wage rather than tax evasion. When M40's median pay (per pax) is like 3.5K rm, natually not many even qualify to pay tax after tax relief and tax deduction. (The B40 group pays zero personal tax for sure).
So yes, consumption tax like GST should be the way to go....

but now that I am retired, I ought be selfish and say no... lets tax people based on active income!!!!! Set minumum tax bracket to be 10% and tax the workers regardless of pay...
ops... I think I just received my free STR/BRIM stipend from gov... Will donate to Hospice next week.
(I am just highlighting that there is something wrong with our system)

Same here. My kids could FIRE and not work a day. Simply because parents passive income enough and my siblings have no kids and already will assets to my kids.
But we decided not to tell young ones so they can create their own identity in life and built their character. That is something more valuable than money and can’t be taken away.

Haha, I don't think anyone can answer with any certainty how much one plans to spend before one passes on!

We will spend within our means - and I think that's probably the best answer I can offer you at this point in time.

Maybe can find a private hospital (in Malaysia preferably where your sgd/aud gets bigger bang for buck), donate or pledge a decent amount and get the hospital to name a building under your name. 

Rich people in the states love to do this...

edit: I forgot.. this is Malaysia. Public hospital most probably will not allow your name to be on a building.

Yes, we just turned 50 a year ago. But, Wedchar2912 is correct - it's something worth thinking about, how I'd like to leave a financial legacy behind, if there's anything worthwhile left to leave.

I guess that's what everyone would like to do when they depart - to leave a little something of them behind, in the memories of the living. In my case, I'm happy to report that I've made a significant and indelible contribution for the better, to many lives in the course of my work and career, and some of my patients have gone on to become doctors themselves because they were inspired to do so by their interactions with me - that's already a legacy left that cannot be taken away. So, I guess the thought of doing something like a bequeathment for a scholarship or an education fund wasn't first and foremost in my mind, but it's surely a worthy consideration!

Now no more talk of FI/RE with monthly passive income between RM1k to RM5k. Wonder why ?

For top earners, unless you are incredibly stupid which is most unlikely, capital preservation would be more than enough. No need for fancy algorithm to attain FI.

Most struggling would be in the M40 group. This group needs tobe  financially savy and takes higher risk to attain their goal.

The interesting part is I think the M40 actually can achieve FIRE as easily, if not more, vs the T20. As long as they don't have the urge to keep up with the Jones.
The numbers (we just have to believe them) don't lie. M40 individual median income is only 3.4K rm per month. 3.4K x 12 x 25 = 1 million.
Incidentally, if one start working at age 20 with salary of 2K pm, contribute to EPF and never take out, salary incement of just 1.5% pa, one's salary at age 60 will reach 3.6K rm pm. With avg div of 5.5%, EPF balance will reach 1 million at age 60.

My own criticism would be how easy is it to get a salary of 2K rm at age 20 back in 1983. Then again, 1.5% pa increment of salary only doesn't make sense too. There must also be other savings/investment outside of EPF too.
(a old ex-colleage of mine told me that she started her career at around 1980s, and her starting pay was 1.4K rm pm.)
Another key point.
For the M40 persons, their FIRE number should be closer to 3K rm per month.
While for the T20, their number would be much higher at say 8K rm per month.
A M40 person die die wants a FIRE number of 20K rm per month is a person who doesn't realize what FIRE is all about. Such person should continue to work harder to achieve a status upgrade, rather than look at retirement.

can one.... not easy, but really don't think it is anywhere near impossibility...

M40 median income is 3.8K per pax.... Their FIRE number is like 2.5 to 3K rm per pax... cannot aim for /k standard of 20K

I'm with you on this. I notice actually majority of B40/M40 insisting not able to have a meaningful retirement, but actually it is their expectation of meaningful retirement lifestyle is a T20 compare to what they are earning - some even want to compare with the elites. Having T20 lifestyle doesn't really equate meaningful

well, just for discussion and awareness, what is meaningful?

if entire life till 55 been at B40, then B40 lifestyle is the meaning. To expect T20 lifestyle at retirement is just unrealistic.
there are 2 more factors that the healthy and young always forget that runs out: time and health.

many of us here are not at the B40 or M40 even, but we tend to project our requirements to everyone with regards to spending. I am sure the ones with 20 million networth will say they cannot retire if they only 10 million networth. haha.

But to fair, I also think a B40 statistically won't have accumulated 500K rm or 1 million. it is very hard.